THE government is on track to implement International Financial Reporting Standards (IFRS) from April 1 next year, corporate affairs minister Salman Khurshid said. “The committee of secretaries (CoS) have met and all issues have been addressed,” Mr Khurshid said on the sidelines of the Petrotech conference 2010.Online GST Certification Course by TaxGuru & MSME- Click here to Join
While the government has decided that Indian Accounting Standards (IAS), currently followed by companies here, will converge with IFRS by April 2011, there are still some dissenting voices that oppose its hasty implementation.
The new accounting practice differs from Indian standards in sixseven significant ways, especially in areas related to mergers and acquisition, financial instruments such as derivatives, environmental issues such as carbon credits, and rules related to depreciation and foreign exchange transactions. The new system is expected to transform companies’ balance sheet and improve transparency in financial statements. It will also facilitate listing of Indian companies on international stock exchanges and raise cheaper funds overseas. Those already listed will see their compliance costs drop. The CoS is expected to finalise the proposal of introducing changes in the Companies Bill that will give legal sanctity to introduction of new accounting system in India.